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B U S iN E S S
                       Richard Randolph
             Community Outreach Director
                         Manasota SCORE
       Richard.ManasotaSCORE@gmail.com
Our Journey Today
 Why Business Creativity Matters

 It’s a Messy Process

 The Kano Model

 Practical Application (You do it!)

 Creativity Meter: 90%!

 Ready?
…creativity is the
most important
human resource
of all.
         ~ Edward de Bono
Being good in business is the
most fascinating kind of art…

good business
is the best art.
                                ~ Andy Warhol
...intuition
           and creativity
are fast becoming the
only
differentiating
factors                         ~ John Maeda,
                                      President
among competitors.          Rhode Island School
                                      of Design
Creativity is not
the finding of a thing,
but

making something
out of it after it is found.
                     ~ James Russell Lowell
When NASA first started sending up astronauts,
they quickly discovered that ballpoint pens
would not work in zero gravity.

To combat the problem, NASA scientists spent
a decade and $12 million to develop a pen that
writes in zero gravity, upside down, underwater, on
almost any surface, and at temperatures ranging
from below freezing to 300 degrees Celsius.
Creativity in business 7
The Russians used a pencil.
Creative thinking
is not a talent,

     skill that
it is a

can be learned.
                    ~ Edward de Bono
Creativity is just

connecting
things.
                              ~ Steve Jobs
                     Wired, February 1996
The brain is a
wonderful organ;
it starts working
the moment you
get up in the morning
and does not stop until
you get into the office.
                           ~ Robert Frost
The chief enemy
of creativity is
‘good’ sense.

      ~ Pablo Picasso
The “9 Dots” Activity
    Think Outside the
          Box
           •               •              •
           •               •              •
           •               •              •
Connect all the dots with no more than four straight lines.
The “9 Dots” Activity
  Think Outside the
    • Box •
         •
    •      •      •
    •      •      •

     Where is “the box”?
Creativity in business 7
“The Squiggle” by Damien Newman
UNCERTAINTY / PATTERNS / INSIGHTS       CLARITY / FOCUS




Research            Concept     Prototype           Design
It’s a                      Process!
   Two Stages of Creative Thinking




     Divergence                  Convergence
Creativity / Idea Generation    Evaluation / Innovation
  Often seen as “messy”        Viewed as “orderly / logical”
    “Agriculture” model           “Industrial” model
                 The gap is important!
You don’t have to outrun the bear!
You don’t have to outrun the bear!
The Principle of The
           Winning Edge
Small improvements in specific areas over time

  produce   HUGE changes in results.
If you “win by a nose” you collect double the
prize money of the second-place finisher.


    +1% = 100%
2008 U.S. Open Golf Tournament – Torrey Pines, La Jolla, CA




 1 Tiger Woods 69–71–72–71= 283–71– 4    Payday: $1,350,000

 2 Rocco Mediate 72–68–70–73= 283–71–5   Payday:   $810,000
Small   Differences Mean
                          Big Rewards
                          How much margin of
                          victory do you need?


        You only need
            to win   by
        “   a nose”
The Kano Model




                                      Dr. Noriaki Kano
                                     Professor Emeritus
 A technique to classify customer   Tokyo Rika University
needs and determine appropriate            (1984)
       levels of innovation
The Kano Model Elements


Must-be      Linear

Indifferent Attractive
“Must-Be” (Basic) Factors
                     The ‘table stakes’

The   least acceptable
• Absence leads to dissatisfaction

• Satisfying does not create satisfaction –
  it merely minimizes dissatisfaction

Examples:
• Toilet rolls in a hotel room.
  Zero toilet rolls = unhappy Customer
  Three extra toilet rolls = not unhappy,
  but not happy
Linear – More is Better
                  ‘Performance’ Factors

Consciously evaluated by the Customer
Expressly in their minds when making a purchase decision
   • Satisfaction is proportional
   • Often ‘stated’ needs
Examples:
   • Miles per gallon

   • Waiting time in line
Indifferent Factors
                 No Impact on Purchase
Customers just don’t   care one way or another
Produces a “so   what?” reaction.
Who cares?
Attractive (Delighters)
                     Excitement Factors
Not expected – Absence will not dissatisfy

Presence will delight and increase satisfaction.
Provides unexpected satisfaction – a “   wow!          ”

Example:
• Internet access on a plane is not expected
  so will not upset if not present, but will delight
  if it is.
 Hands-free Bluetooth calling
    Example:                   Rear View Camera
List the Delighters…           Pandora Internet Radio Integration




   A recent Honda TV ad featuring three “Delighters”
The Kano Model Diagram
                                   Completely Satisfied

           Attractive features
         delight when present
               but produce no
          dissatisfaction when
                    not present
                                                  Indifferent
  Dysfunctional                                                           Fully Functional


                                                             Must-be (Basics)
Linear attributes / needs
                                                    Satisfying basic needs minimizes
are on their minds when
                                                    dissatisfaction. Absence or poor
purchasing and are                                  execution leads to dissatisfaction
consciously evaluated
by the customer

                                  Completely Dissatisfied
Kano Model Elements
  Must-be             Linear            Indifferent         Attractive
    (Basics)      (One-dimensional)      (Don’t care)        (Delighters)

 Table Stakes      More is better        So what?              Wow!
                   Phone answer       “On-hold” music       “One Click”
  Pay on-line
                      speed                                  shopping
                                          Ambient          24-hour early
Flight Ticket /
                   Check-in lines     background music    on-line check-in;
Boarding Pass
                                                          Business Lounge
                                      More cell phone
                    Lower Price
                                         features
                                       Multiple auto-
                   Lower Interest
                                      function camera
                       Rate
                                          buttons
Package arrives   Faster Package      Color of trucks /      Same-day
  unbroken           Delivery            uniforms             delivery
Not defective     Longer Product                          Automatic, free
 in the box          Life Span                               upgrades
Kano Model Elements
        For A Hotel – Business Client
    Must-be                 Linear          Indifferent          Attractive
    (Basics)         (One-dimensional)      (Don’t care)         (Delighters)
Fast Check-in       Price                Local Newspaper      Fitness Center
Fast Check-out      Location             Phone in room        Swimming Pool

Wireless Internet   Restaurant           Covered parking      Jacuzzi

Comfortable bed     Quality of Towels    Multi-color linens   Cable / HBO
Quick breakfast     Room size                                 “Office” Space

TV in room          Size of TV           Brand of Control     Big-Screen TV

Toilet Rolls in     Quality of paper     Hotel Staff          Free Valet Parking
room                                     Uniforms
Kano Model Elements
For The Same Hotel – Vacation Client
     Must-be                 Linear         Indifferent          Attractive
     (Basics)        (One-dimensional)      (Don’t care)        (Delighters)
 Location            Price                                    Local Newspaper
 Swimming Pool       Fitness Center      Phone in room        Wireless Internet

 Wireless Internet   Restaurant          Covered parking

 Comfortable bed     Quality of Towels   “Office” Space

                     Room size           Free Valet Parking

 Cable TV / HBO      Fast Check-in       Hotel Staff          Big-Screen TV
                                         Uniforms
 Toilet Rolls in     Fast Check-out
 room
                     Restaurant                               Continental
                                                              Breakfast
Your Turn!
 List the Kano Model Elements
   for Your Own Organization
Must-be        Linear          Indifferent    Attractive
(Basics)   (One-dimensional)   (Don’t care)   (Delighters)
Attractive              Basic

     The innovations of yesterday
become the hygiene   factors of tomorrow.
If it’s not done well
      it could have the

opposite effect!
Money – How to Lose it; How to Make it
Must Be – where money is lost!
      “A market is never saturated with a good product,
       but it is very quickly saturated with a bad one.”
                                                ~ Henry Ford


Attractive – where money is MADE!

“If I had asked people what they wanted,
 they would have said faster horses.”
                             ~ Henry Ford
A lot of times, people
don't know what they want
until you show it
to them.
                   ~ Steve Jobs
                 Business Week
Strategies

Must Be’s – fulfill 100% – first priority

Exciters/Delighters – differentiate

Linear – Position for profit
Strategies –
         New Products and Services
Must-be (Basics) – Be sure to match competition
    Exclude these at your peril – but don’t overdo them!

Linear (One-dimensional) – Each one adds greater value
    Try for several

Indifferent – you don’t need them
    Minimize or eliminate

Attractive (Delighters) – Key   differentiators
    Emphasize / Market
Where to Look for Ideas
Category           Look to…
               • Competitors
  Must Be      • Customer Complaints / Lost Sales
               • Sales Force Feedback

               •   Competitor Advertising
               •   Customer Complaints
   Linear      •   Customer Requests
               •   Sales Force Feedback

               • Customer Comments
 Indifferent   • Customer Expectations / Specifications
               • Price Resistance
               • Customer Complaints
 Attractive    • “Lead Users”
               • “Innovators” and “Early Majority”
Lead Users
1,193 successful innovations
9 industries

60% came from customers
Every good product I’ve ever seen
is because a group of people cared
deeply about making something
wonderful they and their friends
wanted.
They wanted to

use it themselves.
The best way to
have a good      idea
is to have a

lot of ideas.
               ~ Dr. Linus Pauling
SCAMPER
Substitute
  Combine
   Adapt
     Modify
       Put to other uses
         Eliminate
           Reverse
How-To
Follow Up
 Customers – VOC Voice of the Customer
    • Complaints
    • Suggestions
 Those who did NOT buy from you
 Sales Force
 Internal
 Competitive Analysis

New Opportunities
 Gaps
 New wants / needs
Strategies
 Distort time

 Make waiting in lines fun

 Help people solve   problems
Rescue Me!
  (Get people back on track)
 Make the first experience fun
Creativity in business 7
Tactics
Personalize and Customize

        name
Use their        – welcome back,
remember preferences

Customers will remember you if you can
remember their name
A person’s name
is to that person
the sweetest and
most important
sound in any
language.
          —Dale Carnegie
Action Tips
There are few things customers talk about

more than a   pleasant surprise

Design matters!
Your   customers are a great resource
People will forget
what you said,
they will forget
what you did,
but they will
never forget
how you                         ~ Maya Angelou

make them            feel   .
Why This Matters to You
 Attract new Customers

 Increase your ‘wallet share’

 Increase their purchase frequency

 Increase spontaneous referrals

 Block competition
Innovation distinguishes
between a leader and
a follower.
The Innovation Secrets
of Steve Jobs
Don't worry about people
stealing your ideas. If your
ideas are any good, you’ll have
to ram   them down
people’s throats.
                   ~ Howard Aiken
The true sign
    of intelligence
is not knowledge




       but
       imagination
Here's to the crazy ones, the misfits, the rebels, the
troublemakers, the round pegs in the square
holes... the ones who see things differently –
they're not fond of rules... You can quote them,
disagree with them, glorify or vilify them, but the
only thing you can't do is ignore them because they
change things... they push the human race forward,
and while some may see them as the crazy ones,
we see genius, because the ones who are crazy
enough to think that they can change the world, are
the ones who do.
                                          ~ Steve Jobs
Creativity in business 7
Creativity in business 7
in
B U S iN E S S
                       Richard Randolph
             Community Outreach Director
                         Manasota SCORE
       Richard.ManasotaSCORE@gmail.com

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Creativity in business 7

  • 1. in B U S iN E S S Richard Randolph Community Outreach Director Manasota SCORE Richard.ManasotaSCORE@gmail.com
  • 2. Our Journey Today Why Business Creativity Matters It’s a Messy Process The Kano Model Practical Application (You do it!) Creativity Meter: 90%! Ready?
  • 3. …creativity is the most important human resource of all. ~ Edward de Bono
  • 4. Being good in business is the most fascinating kind of art… good business is the best art. ~ Andy Warhol
  • 5. ...intuition and creativity are fast becoming the only differentiating factors ~ John Maeda, President among competitors. Rhode Island School of Design
  • 6. Creativity is not the finding of a thing, but making something out of it after it is found. ~ James Russell Lowell
  • 7. When NASA first started sending up astronauts, they quickly discovered that ballpoint pens would not work in zero gravity. To combat the problem, NASA scientists spent a decade and $12 million to develop a pen that writes in zero gravity, upside down, underwater, on almost any surface, and at temperatures ranging from below freezing to 300 degrees Celsius.
  • 9. The Russians used a pencil.
  • 10. Creative thinking is not a talent, skill that it is a can be learned. ~ Edward de Bono
  • 11. Creativity is just connecting things. ~ Steve Jobs Wired, February 1996
  • 12. The brain is a wonderful organ; it starts working the moment you get up in the morning and does not stop until you get into the office. ~ Robert Frost
  • 13. The chief enemy of creativity is ‘good’ sense. ~ Pablo Picasso
  • 14. The “9 Dots” Activity Think Outside the Box • • • • • • • • • Connect all the dots with no more than four straight lines.
  • 15. The “9 Dots” Activity Think Outside the • Box • • • • • • • • Where is “the box”?
  • 17. “The Squiggle” by Damien Newman UNCERTAINTY / PATTERNS / INSIGHTS CLARITY / FOCUS Research Concept Prototype Design
  • 18. It’s a Process! Two Stages of Creative Thinking Divergence Convergence Creativity / Idea Generation Evaluation / Innovation Often seen as “messy” Viewed as “orderly / logical” “Agriculture” model “Industrial” model The gap is important!
  • 19. You don’t have to outrun the bear!
  • 20. You don’t have to outrun the bear!
  • 21. The Principle of The Winning Edge Small improvements in specific areas over time produce HUGE changes in results. If you “win by a nose” you collect double the prize money of the second-place finisher. +1% = 100%
  • 22. 2008 U.S. Open Golf Tournament – Torrey Pines, La Jolla, CA 1 Tiger Woods 69–71–72–71= 283–71– 4 Payday: $1,350,000 2 Rocco Mediate 72–68–70–73= 283–71–5 Payday: $810,000
  • 23. Small Differences Mean Big Rewards How much margin of victory do you need? You only need to win by “ a nose”
  • 24. The Kano Model Dr. Noriaki Kano Professor Emeritus A technique to classify customer Tokyo Rika University needs and determine appropriate (1984) levels of innovation
  • 25. The Kano Model Elements Must-be Linear Indifferent Attractive
  • 26. “Must-Be” (Basic) Factors The ‘table stakes’ The least acceptable • Absence leads to dissatisfaction • Satisfying does not create satisfaction – it merely minimizes dissatisfaction Examples: • Toilet rolls in a hotel room. Zero toilet rolls = unhappy Customer Three extra toilet rolls = not unhappy, but not happy
  • 27. Linear – More is Better ‘Performance’ Factors Consciously evaluated by the Customer Expressly in their minds when making a purchase decision • Satisfaction is proportional • Often ‘stated’ needs Examples: • Miles per gallon • Waiting time in line
  • 28. Indifferent Factors No Impact on Purchase Customers just don’t care one way or another Produces a “so what?” reaction.
  • 30. Attractive (Delighters) Excitement Factors Not expected – Absence will not dissatisfy Presence will delight and increase satisfaction. Provides unexpected satisfaction – a “ wow! ” Example: • Internet access on a plane is not expected so will not upset if not present, but will delight if it is.
  • 31.  Hands-free Bluetooth calling Example:  Rear View Camera List the Delighters…  Pandora Internet Radio Integration A recent Honda TV ad featuring three “Delighters”
  • 32. The Kano Model Diagram Completely Satisfied Attractive features delight when present but produce no dissatisfaction when not present Indifferent Dysfunctional Fully Functional Must-be (Basics) Linear attributes / needs Satisfying basic needs minimizes are on their minds when dissatisfaction. Absence or poor purchasing and are execution leads to dissatisfaction consciously evaluated by the customer Completely Dissatisfied
  • 33. Kano Model Elements Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters) Table Stakes More is better So what? Wow! Phone answer “On-hold” music “One Click” Pay on-line speed shopping Ambient 24-hour early Flight Ticket / Check-in lines background music on-line check-in; Boarding Pass Business Lounge More cell phone Lower Price features Multiple auto- Lower Interest function camera Rate buttons Package arrives Faster Package Color of trucks / Same-day unbroken Delivery uniforms delivery Not defective Longer Product Automatic, free in the box Life Span upgrades
  • 34. Kano Model Elements For A Hotel – Business Client Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters) Fast Check-in Price Local Newspaper Fitness Center Fast Check-out Location Phone in room Swimming Pool Wireless Internet Restaurant Covered parking Jacuzzi Comfortable bed Quality of Towels Multi-color linens Cable / HBO Quick breakfast Room size “Office” Space TV in room Size of TV Brand of Control Big-Screen TV Toilet Rolls in Quality of paper Hotel Staff Free Valet Parking room Uniforms
  • 35. Kano Model Elements For The Same Hotel – Vacation Client Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters) Location Price Local Newspaper Swimming Pool Fitness Center Phone in room Wireless Internet Wireless Internet Restaurant Covered parking Comfortable bed Quality of Towels “Office” Space Room size Free Valet Parking Cable TV / HBO Fast Check-in Hotel Staff Big-Screen TV Uniforms Toilet Rolls in Fast Check-out room Restaurant Continental Breakfast
  • 36. Your Turn! List the Kano Model Elements for Your Own Organization Must-be Linear Indifferent Attractive (Basics) (One-dimensional) (Don’t care) (Delighters)
  • 37. Attractive   Basic The innovations of yesterday become the hygiene factors of tomorrow.
  • 38. If it’s not done well it could have the opposite effect!
  • 39. Money – How to Lose it; How to Make it Must Be – where money is lost! “A market is never saturated with a good product, but it is very quickly saturated with a bad one.” ~ Henry Ford Attractive – where money is MADE! “If I had asked people what they wanted, they would have said faster horses.” ~ Henry Ford
  • 40. A lot of times, people don't know what they want until you show it to them. ~ Steve Jobs Business Week
  • 41. Strategies Must Be’s – fulfill 100% – first priority Exciters/Delighters – differentiate Linear – Position for profit
  • 42. Strategies – New Products and Services Must-be (Basics) – Be sure to match competition  Exclude these at your peril – but don’t overdo them! Linear (One-dimensional) – Each one adds greater value  Try for several Indifferent – you don’t need them  Minimize or eliminate Attractive (Delighters) – Key differentiators  Emphasize / Market
  • 43. Where to Look for Ideas Category Look to… • Competitors Must Be • Customer Complaints / Lost Sales • Sales Force Feedback • Competitor Advertising • Customer Complaints Linear • Customer Requests • Sales Force Feedback • Customer Comments Indifferent • Customer Expectations / Specifications • Price Resistance • Customer Complaints Attractive • “Lead Users” • “Innovators” and “Early Majority”
  • 44. Lead Users 1,193 successful innovations 9 industries 60% came from customers
  • 45. Every good product I’ve ever seen is because a group of people cared deeply about making something wonderful they and their friends wanted. They wanted to use it themselves.
  • 46. The best way to have a good idea is to have a lot of ideas. ~ Dr. Linus Pauling
  • 47. SCAMPER Substitute Combine Adapt Modify Put to other uses Eliminate Reverse
  • 48. How-To Follow Up Customers – VOC Voice of the Customer • Complaints • Suggestions Those who did NOT buy from you Sales Force Internal Competitive Analysis New Opportunities Gaps New wants / needs
  • 49. Strategies  Distort time  Make waiting in lines fun  Help people solve problems Rescue Me! (Get people back on track)  Make the first experience fun
  • 51. Tactics Personalize and Customize name Use their – welcome back, remember preferences Customers will remember you if you can remember their name
  • 52. A person’s name is to that person the sweetest and most important sound in any language.
 —Dale Carnegie
  • 53. Action Tips There are few things customers talk about more than a pleasant surprise Design matters! Your customers are a great resource
  • 54. People will forget what you said, they will forget what you did, but they will never forget how you ~ Maya Angelou make them feel .
  • 55. Why This Matters to You  Attract new Customers  Increase your ‘wallet share’  Increase their purchase frequency  Increase spontaneous referrals  Block competition
  • 56. Innovation distinguishes between a leader and a follower. The Innovation Secrets of Steve Jobs
  • 57. Don't worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats. ~ Howard Aiken
  • 58. The true sign of intelligence is not knowledge but imagination
  • 59. Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes... the ones who see things differently – they're not fond of rules... You can quote them, disagree with them, glorify or vilify them, but the only thing you can't do is ignore them because they change things... they push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do. ~ Steve Jobs
  • 62. in B U S iN E S S Richard Randolph Community Outreach Director Manasota SCORE Richard.ManasotaSCORE@gmail.com

Notas del editor

  1. When business is regarded as an artistic endeavor, it has the same potential as an art piece to challenge and impact every aspect of our lives. And to win and hold the public’s interest, just as any art form does, a business must be technically well-executed, as well as imaginative and engaging at the same time.
  2. The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. These classifications are useful for guiding design decisions in that they indicate when good is good enough, and when more is better.
  3. there is a basic level of quality (“Must Be” )that customers assume the product will have. For example, all automobiles have windows and tires. If asked, customers don’t even mention the basic quality items, they take them for granted. However, if this quality level isn’t met the customer will be dissatisfied; note that the entire “Basic Quality” curve lies in the lower half of the chart, representing dissatisfaction. However, providing basic quality isn’t enough to create a satisfied customer.Threshold (or basic) attributes are theexpected attributes or “musts” of aproduct, and do not provide anopportunity for product differentiation.Increasing the performance of theseattributes provides diminishing returnsin terms of customer satisfaction,however the absence or poorperformance of these attributes results inextreme customer dissatisfaction. An example of a threshold attribute would be brakes on a car.
  4. The expected quality (“More is Better”) line represents those expectations which customers explicitly consider. For example, the length of time spent waiting in line at a checkout counter. The model shows that customers will be dissatisfied if their quality expectations are not met; satisfaction increases as more expectations are met.
  5. The exciting quality curve lies entirely in the satisfaction region. This is the effect of innovation. Exciting quality represents unexpected quality items. The customer receives more than they expected. For example, Cadillac pioneered a system where the headlights stay on long enough for the owner to walk safely to the door.Excitement attributes are unspoken and unexpected by customers but can result in high levels of customer satisfaction, however their absence does not lead to dissatisfaction. Excitement attributes often satisfy latent needs – real needs of which customers are currently unaware. In a competitive marketplace where manufacturers’ products provide similar performance, providing excitement attributes that address “unknown needs” can provide a competitive advantage. Although they have followed the typical evolution to a performance then a threshold attribute, cup holders were initially excitement attributes.